Half-yearly Report

We are delighted to present the half-yearly financial report of
Ingenious Entertainment VCT 2 plc (the Company) covering the six months
ended 30 June 2015 (the Reporting Period).

Overview of Activities

In December 2014, the Company cancelled all of its C shares and
completed the full distribution of capital in relation to those shares
in January 2015.

The Company has now completed its investment strategy and is fully
invested under VCT regulations for its D, E, F and G share classes. The
Manager will now focus upon maximising the returns from the investments
made from those share classes.

The Company continues to actively source and review investment
opportunities for the H share class. No further investments were made
during the Reporting Period, although the Company has agreed principal
terms on three commercial opportunities which it is looking to close in
the third quarter of 2015.

During the Reporting Period two live events were undertaken by two of
the Company’s investee companies. Liverpool Sound City took place from
22 to 24 May 2015 with a new ‘Festival style’ format that took place in
the docklands area of Liverpool.

Field Day 2015 was staged on 7 and 8 June and once again delivered both
increased attendances and increased profits. In June 2015, the Company
accepted an offer to acquire its 15% stake in Waxarch Limited (the
investee company that stages Field Day). The purchase price agreed is at
a six times multiple of the event’s 2015 profits with the deal scheduled
to complete in September 2015. The capital growth over the life of the
investment equates to an unaudited six pence per share uplift for the D
share class (an unaudited three pence per share uplift since the
previous valuation as at 31 December 2014) and an unaudited three pence
per share uplift for each of the E and F share classes (an unaudited one
pence per share uplift since the previous valuation as at 31 December
2014).

The D Share class reached its five year anniversary on 30 July 2015 and
the intention is to distribute any funds remaining in this share class
shortly.

The C shares did not trade during the Reporting Period and, therefore,
had no profit or loss to report (31 December 2014: loss of £47,000; 30
June 2014: loss of £35,000). The D shares made a loss of £14,000 (31
December 2014: loss of £13,000; 30 June 2014: loss of £87,000). The E
shares made a profit of £7,000 (31 December 2014: profit of £7,000; 30
June 2014: loss of £29,000). The F shares made a loss of £Nil (31
December 2014: loss of £6,000; 30 June 2014: loss of £18,000). The G
shares made a loss of £44,000 (31 December 2014: loss of £69,000; 30
June 2014: loss of £31,000). The H shares made a loss of £6,000 (31
December 2014: loss of £16,000; 30 June 2014: loss of £7,000).

The unaudited net asset value per C share at 30 June 2015 was £Nil pence
(31 December 2014: £Nil; 30 June 2014: 39.5). On 17 December 2014 the
High Court of Justice of England and Wales made an order sanctioning the
resolutions passed by the Company in general and class meetings held on
27 November 2014 by which the Company’s shareholders approved the
reduction of the Company’s share capital by the cancellation and
extinguishment of all of its C shares. Up to 31 December 2014, the
Company returned 78.0729 pence to investors, with the final distribution
of 1 pence per C share paid to investors on 14 January 2015.

The unaudited net asset value per D share is 44.1 pence (31 December
2014: 64.3 pence; 30 June 2014: 63.2 pence) although this is after the
deduction of an interim dividend of 20.0 pence per share in the
Reporting Period and the deduction of a total of 20.0 pence per share in
previous periods. The net asset value including distributions to date is
therefore 84.1 pence per share (31 December 2014: 84.3 pence per share;
30 June 2014: 83.2 pence per share).

The unaudited net asset value per E share is 67.4 pence (31 December
2014: 72.2 pence; 30 June 2014: 70.9 pence) although this is after the
deduction of an interim dividend of 5.0 pence per share in the Reporting
Period and the deduction of a total of 15.0 pence per share in previous
periods. The net asset value including distributions to date is
therefore 87.4 pence per share (31 December 2014: 87.2 pence per share;
30 June 2014: 85.9 pence per share).

The unaudited net asset value per F share is 69.7 pence (31 December
2014: 74.7 pence; 30 June 2014: 73.9 pence) although this is after the
deduction of an interim dividend of 5.0 pence per share in the Reporting
Period and the deduction of a total of 15.0 pence per share in previous
periods. The net asset value including distributions to date is
therefore 89.7 pence per share (31 December 2014: 89.7 pence per share;
30 June 2014: 88.9 pence per share).

The unaudited net asset value per G share is 73.4 pence (31 December
2014: 79.7 pence; 30 June 2014: 80.8 pence) although this is after the
deduction of an interim dividend of 5.0 pence per share in the Reporting
Period and the deduction of a total of 10.0 pence per share in previous
periods. The net asset value including distributions to date is
therefore 88.4 pence per share (31 December 2014; 89.7 pence per share;
30 June 2014: 90.8 pence per share).

The unaudited net asset value per H share is 82.7 pence (31 December
2014: 87.9 pence; 30 June 2014: 88.2 pence) although this is after the
deduction of an interim dividend of 5.0 pence per share in the Reporting
Period and the deduction of a total of 5.0 pence per share in previous
periods.. The net asset value including distributions to date is
therefore 92.7 pence per share (31 December 2014; 92.9 pence per share;
30 June 2014: 93.2 pence per share).

Investment Objective

The Company’s main objective is to invest in companies established to
create and bring to market live events and premium entertainment content
which will provide shareholders with an attractive return. This strategy
will aim to maximise the opportunities for paying tax-free dividends to
shareholders from both the actual income received and capital profits on
the sale of investments in the companies that the Company and Ingenious
Entertainment VCT 1 plc (together the Ingenious Entertainment VCT’s)
invest in (Investee Companies).

The current investment portfolio includes:

Festivals

Liverpool Sound City Limited

Ingenious Entertainment VCT 2 investment amount: £600,000 (D share)

(£1,200,000 across the Ingenious Entertainment VCTs)

The 2015 event was held between 22 and 24 May. The new style ‘Music
Festival’ based event proved popular with its audience. Headliners
included The Flaming Lips and Belle and Sebastian, and the event
delivered a profit for the investee company.

The ninth Field Day Festival was held on 7 and 8 June 2015. The Saturday
sold out a week in advance of the staging event, having reached its
40,000 licenced capacity and the Sunday sold 16,000 tickets. The
performance on Saturday saw the event deliver an increase in profits
and, with capacity to grow Sunday significantly, the event is now well
established with further potential growth still achievable. Saturday
headliners included Caribou and FKA Twiggs with Sunday being fronted by
Ride and Patti Smith.

The third Love Supreme Jazz Festival took place from 3 to 5 July 2015.
Headliners included Van Morrison, Chaka Khan and Lisa Stansfield and the
event took another step forward with paying attendances in the region of
9,000 per day.

The Festival is promoted by a company in which the Ingenious
Entertainment VCTs, Jazz FM and Neapolitan Music invested and, with the
2015 event making a £150,000 profit for the investee company, the brand
looks well positioned for further growth in future years.

Outlook

As the economy continues to slowly recover and discretionary spend
increases, the Manager would hope that live event attendances at least
hold firm. What is becoming evident is that the so-called ‘headliner
driven’ event are showing signs of customer fatigue and the events that
deliver more of a broad ranging customer experience are benefitting from
this scenario. The Manager believes that it has created a portfolio that
very much delivers this enhanced customer experience.

The Manager’s focus remains very firmly upon ensuring that each new
investment made by the Company is carefully sourced and structured in
order to balance potential upside against capital risk. The Manager also
believes that the Company’s strategy, which aims to balance equity risk
with a significant level of downside protection through minimum revenue
arrangements in respect of each investment, remains entirely relevant in
an economic environment where recovery remains sluggish.

Ingenious Ventures18 August 2015

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

for the six months ended 30 June 2015

Six months ended

30 June 2015

(unaudited)

Six months ended

30 June 2014

(unaudited)

Year ended

31 December 2014

(audited)

Revenue

Capital

Total

Revenue

Capital

Total

Revenue

Capital

Total

Note

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Gain on disposal of investments

-

60

60

-

46

46

-

64

64

(Decrease)/increase in fair value of investments held

-

(2)

(2)

-

(124)

(124)

-

28

28

Investment income

79

-

79

99

-

99

203

-

203

Arrangement fees

-

-

-

-

-

-

-

-

-

Investment management fees

(52)

(52)

(104)

(65)

(65)

(130)

(121)

(121)

(242)

Other expenses

(90)

-

(90)

(98)

-

(98)

(197)

-

(197)

(Loss)/profit on ordinary activities before taxation

(63)

6

(57)

(64)

(143)

(207)

(115)

(29)

(144)

Tax on ordinary activities

-

-

-

-

-

-

-

-

-

(Loss)/profit attributable to equity shareholders

(63)

6

(57)

(64)

(143)

(207)

(115)

(29)

(144)

Other Comprehensive Income

-

-

-

-

-

-

-

-

-

Total Comprehensive Income for the financial period

(63)

6

(57)

(64)

(143)

(207)

(115)

(29)

(144)

Basic and diluted return per share (pence)

Ordinary share

5

-

-

-

-

-

-

-

-

-

C share

5

-

-

-

(0.6)

(0.6)

(1.2)

(1.1)

(0.7)

(1.8)

D share

5

-

(0.2)

(0.2)

0.5

(1.8)

(1.3)

0.3

(0.5)

(0.2)

E share

5

(0.3)

0.5

0.2

(0.4)

(0.7)

(1.1)

0.3

-

0.3

F share

5

(0.4)

0.4

-

(0.5)

(0.6)

(1.1)

(0.3)

(0.1)

(0.4)

G share

5

(0.6)

(0.7)

(1.3)

(0.9)

-

(1.4)

(1.5)

(0.5)

1.1

(1.0)

(2.0)

1.1

(1.0)

H share

5

(1.1)

0.8

(0.3)

(1.1)

0.8

(0.3)

(2.2)

1.1

(1.0)

1.6

(0.6)

1.1

(1.0)

The Company had no recognised gains and losses other than those
disclosed above.

The total column is the Income Statement of all share classes for the
period. The supplementary capital and revenue columns are prepared
following guidance published by the Association of Investment Companies
(AIC).

The accompanying notes form an integral part of these financial
statements.

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)for the six months
ended 30 June 2015

1. Accounting Policies

a) Basis of Accounting

The financial statements for the Reporting Period have been prepared in
compliance with applicable UK Accounting Standards, being FRS 102 - The
Financial Reporting Standard, the Companies Act 2006 and with the
Statement of Recommended Practice (the SORP) entitled “Financial
Statements of Investment Trust Companies and Venture Capital Trusts”
(with the exception of paragraph 82 of the SORP regarding detailed
disclosure of financial and operational performance of the Company’s
unquoted investments due to their confidential nature) which was issued
in November 2014. The half year accounts are prepared in accordance with
Financial Reporting Standards 104 – Interim Financial Reporting.

The financial statements have been prepared on a going concern basis
under the historical cost convention, modified to include certain items
at fair value. The principal accounting policies have remained unchanged
from those set out in the Company’s 2014 Annual Report and Accounts.

b) Financial Instruments

Financial assets and financial liabilities are recognised when the
Company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to
the substance of the contractual arrangements entered into. An equity
instrument is any contract that evidences a residual interest in the
assets of the Company after deducting all of its liabilities.

(i) Valuation of Investments

The Company’s business is investing in financial assets with a view to
profiting from their total return in the form of income and capital
growth. As set out in each Prospectus all investments are designated at
fair value.

International Private Equity and Venture Capital Valuation Guidelines

Unquoted investments, including equity and loan investments, are
designated at fair value through profit and loss and are valued in
accordance with the International Private Equity and Venture Capital
(IPEVC) Guidelines. Investments are initially recognised at fair value.
The fair value is subsequently re-measured, as estimated by the
Directors. Investment holding gains or losses arising from the
revaluation of investments are recognised in the profit and loss.
Fair value is determined as follows:

Fair value is the amount for which an asset could be exchanged between
knowledgeable, willing parties in an arm’s length transaction.

In estimating the fair value for an investment, the Manager will apply
a methodology that is appropriate in light of the nature, facts and
circumstances of the investment and its materiality in the context of
the total investment portfolio and will use reasonable assumptions and
estimations.

An appropriate methodology incorporates available information about
all factors that are likely to materially affect the fair value of the
investment. The valuation methodologies are applied consistently from
period to period, except where a change would result in a better
estimate of fair value. Any changes in valuation methodologies will be
clearly disclosed in the financial statements.

The most widely used methodologies are listed below. In assessing which
methodology is appropriate, the Directors are predisposed towards those
methodologies that draw upon market-based measures of risk and return.

Price of recent investment

Discounted cash flows/earnings multiple

Net assets

Available market prices

Of these the two methodologies most applicable to the Company’s
investments are:

1 - Price of recent investment

Where the investment being valued was made recently, its cost will
generally provide a good indication of value. It is generally considered
that this would only apply for a limited period; in practice a period up
to the start of the first live event or entertainment content which
forms the investment is often applied as the long stop date for such a
valuation.

2 - Discounted cash flows/earnings of the underlying business

Investments can be valued by calculating the net present value of
expected future cash flows of the Investee Companies. In relation to the
Company’s investments, anticipating future cash flows in excess of the
guaranteed amounts would clearly require highly subjective judgements to
be made in the early stage of each investment and therefore would not be
an appropriate methodology to apply in the early stage of the investment.

In the period prior to the second live event or entertainment content it
is considered appropriate to use the price paid for the recent
investment as the latest available information. Thereafter, the
portfolio of investments is fair valued on the discounted cash
flow/earnings basis using the latest available information on the
performance of the live event or entertainment content. Gains or losses
arising from changes in the fair value of the ‘financial assets at fair
value through profit or loss’ category are presented in the Income
Statement in the period in which they arise.

As a result of the above basis of valuation, there is significant
judgement associated with the valuation of investments.

Non-qualifying Investments - OEICs

The Company’s Non-qualifying Investments in interest bearing money
market OEICs are valued at fair value which is bid price. They have been
designated as fair value through profit or loss for the purposes of
FRS 102.

Gains and losses arising from changes in fair value of Qualifying and
Non-qualifying Investments are recognised as part of the capital return
within the profit or loss and allocated to the realised or unrealised
capital reserve as appropriate. Transaction costs attributable to the
acquisition or disposal of investments are charged to capital within the
profit or loss.

(ii) Financial assets and liabilities

All financial assets and liabilities are initially measured at
transaction price (including transaction costs), except for those
financial assets classified as at fair value through profit or loss,
which are initially measured at fair value (which is normally the
transaction price excluding transaction costs), unless the arrangement
constitutes a financing transaction. If an arrangement constitutes a
finance transaction, the financial asset or financial liability is
measured at the present value of the future payments discounted at a
market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet
when there exists a legally enforceable right to set off the recognised
amounts and the Company intends either to settle on a net basis, or to
realise the asset and settle the liability simultaneously.

Debt instruments which meet the following conditions are subsequently
measured at amortised cost using the effective interest method:

(a) Returns to the holder are (i) a fixed amount; or (ii) a fixed rate
of return over the life of the instrument; or (iii) a variable return
that, throughout the life of the instrument, is equal to a single
referenced quoted or observable interest rate; or (iv) some combination
of such fixed rate and variable rates, providing that both rates are
positive.

(b) There is no contractual provision that could, by its terms, result
in the holder losing the principal amount or any interest attributable
to the current period.

(c) Contractual provisions that permit the issuer to prepay a debt
instrument or permit the holder to put it back to the issuer before
maturity are not contingent on future events, other than to protect the
holder against the credit deterioration of the issuer or a change in
control of the issuer, or to protect the holder or issuer against
changes in relevant taxation or law.

(d) There are no conditional returns or repayment provisions except for
the variable rate return described in (a) and prepayment provisions
described in (c).

Debt instruments that are classified as payable or receivable within one
period and which meet the above conditions are measured at the
undiscounted amount of the cash or other consideration expected to be
paid or received, net of impairment.

Other debt instruments not meeting these conditions are measured at fair
value through profit or loss.

Commitments to make and receive loans which meet the conditions
mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when a) the contractual
rights to the cash flows from the financial asset expire or are settled,
b) the Company transfers to another party substantially all of the risks
and rewards of ownership of the financial asset, or c) the Company,
despite having retained some significant risks and rewards of ownership,
has transferred control of the asset to another party and the other
party has the practical ability to sell the asset in its entirety to an
unrelated third party and is able to exercise that ability unilaterally
and without needing to impose additional restrictions on the transfer.

Financial liabilities are derecognised only when the obligation
specified in the contract is discharged, cancelled or expires.

c) Investment Income

Interest income is recognised in the profit or loss under the effective
interest method. The effective interest rate is the rate required to
discount the expected future income streams over the life of the loan to
its initial carrying amount. The main impact for the Company in that
regard is the accounting treatment of the loan note premiums. Where
those loan note premiums are charged in lieu of higher interest then
they are credited to income over the life of the advance to the extent
those premiums are anticipated to be collected.

d) Dividend Income

Dividend income is recognised in the profit or loss once it is declared
by the Investee Companies.

e) Expenses

All expenses are accounted for on an accruals basis. Expenses are
charged to the revenue account within the Income Statement except that:

expenses which are incidental to the acquisition or disposal of an
investment are charged to capital in the Income Statement as incurred;

expenses are split and presented partly as capital items where a
connection with the maintenance or enhancement of the value of the
investments held can be demonstrated; and

the management fee has been allocated 50% to revenue and 50% to
capital, which represents the split of the Company’s long term returns.

General expenses were paid for by the Ordinary share class until 31 July
2013, by the C share class until 31 July 2014 and from the D share class
1 August 2014 onwards. The expenses have been recharged on a quarterly
basis to the other share classes based on the proportional net asset
value per share class as at the last day of the previous quarter.

f) Taxation

Current tax, including UK corporation tax and foreign tax, is provided
at amounts expected to be paid (or recovered) using the tax rates and
laws that have been enacted or substantively enacted by the balance
sheet date.

Deferred taxation is recognised in respect of all timing differences
that have originated but not reversed at the Balance Sheet date where
transactions or events that result in an obligation to pay more, or a
right to pay less, tax in the future have occurred at the Balance Sheet
date. This is subject to deferred tax assets only being recognised if it
is considered more likely than not that there will be suitable profits
from which the future reversal of the underlying timing differences can
be deducted. Timing differences are differences arising between the
Company’s taxable profits and its results as stated in the financial
statements which are capable of reversal in one or more subsequent
periods.

The Company had seven share classes up to 17 December 2013: Ordinary
shares, C shares, D shares, E shares, F shares, G shares and H shares.
On 20 December 2013 the Company’s capital was reduced by the
cancellation and extinguishment of all of its Ordinary shares. On 17
December 2014 the Company’s capital was reduced by the cancellation and
extinguishment of all of its C shares. Each share class has a separate
pool of income and expenses as well as assets and liabilities
attributable to it. All share classes rank pari passu with each other in
terms of voting rights.

In the application of the Company’s accounting policies, which are
described in note 1, the directors are required to make judgements,
estimates and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual results may
differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision
affects both current and future periods.

3. Loss on ordinary activities before taxation

Loss on ordinary activities before taxation is stated after charging:

30 June 2015

£’000

30 June 2014

£’000

31 December 2014

£’000

Audit fees

8,850

8,850

16,500

8,850

8,850

16,500

4. Directors remuneration and employees

30 June 2015

£’000

30 June 2014

£’000

31 December 2014

£’000

Aggregate Directors remuneration

18,750

18,750

37,500

18,750

18,750

37,500

The company had no employees during the financial period ended 30 June
2015 (31 December 2014: Nil, 30 June 2014: Nil).

5. Basic and Diluted Return per share

The calculation of the basic return per Ordinary share is based on the
return on ordinary activities after tax for the period and on a weighted
average of Nil Ordinary shares in issue for the six months ended 30 June
2015 (31 December 2014: Nil; 30 June 2014: 10,205,011). The basic return
per C share has been calculated on a weighted average of 2,810,596 C
shares in issue for the six months ended 30 June 2015 (31 December 2014:
2,810,596; 30 June 2014: 2,810,596). The basic return per D share has
been calculated on a weighted average of 6,735,624 D shares in issue for
the six months ended 30 June 2015 (31 December 2014: 6,735,624; 30 June
2014: 6,735,624). The basic return per E share has been calculated on a
weighted average of 2,846,122 E shares in issue for the six months ended
30 June 2015 (31 December 2014: 2,846,122; 30 June 2014: 2,846,122). The
basic return per F share has been calculated on a weighted average of
1,572,095 F shares in issue for the six months ended 30 June 2015
(31 December 2014: 1,572,095; 30 June 2014: 1,572,095). The basic return
per G share has been calculated on a weighted average of 3,518,044 G
shares in issue for the six months ended 30 June 2015 (31 December 2014:
3,518,044; 30 June 2014: 3,518,044). The basic return per H share has
been calculated on a weighted average of 2,660,842 H shares in issue for
the six months ended 30 June 2015 (31 December 2014: 2,660,842; 30 June
2014: 2,660,842).

There are no dilutive potential D shares, E shares, F shares, G shares
or H shares, including convertible instruments, options or contingent
share agreements in issue for the Company. The basic return per share is
therefore the same as the diluted return per share.

6. Investments

30 June 2015

£’000

30 June 2014

£’000

31 December 2014

£’000

Fixed Assets

Level c (ii)

Qualifying Investments:

7,240

7,311

8,280

Current Assets

Non-qualifying Investments:

3,147

5,663

4,396

10,387

12,974

12,676

a) Qualifying Investments

Quoted market prices in active markets – “Level a”

Level a: quoted prices in active markets for an identical asset. The
fair value of financial instruments traded in active markets is based on
quoted market prices at the balance sheet date. A market is regarded as
active if quoted prices are readily and regularly available, and those
prices represent actual and regularly occurring market transactions on
an arm’s length basis. The quoted market price used for financial assets
held is the current bid price.

Level b: where quoted prices are not available, the price of a recent
transaction for an identical asset, providing there has been no
significant change in economic circumstances or a significant lapse in
time since the transaction took place.

Valued using models with observable parameters – “Level c (i)”

Level c(i): fair values where the value estimate relies on observable
market data. The fair value is determined by using valuation techniques.
These valuation techniques maximise the use of observable data where it
is available and rely as little as possible on entity specific
estimates. If all the inputs required to fair value an instrument are
observable, the instruments is included in level c (i).

Level c(ii): fair values are not traded in an active market and the fair
value is determined by using valuation techniques such as less recent
third party transactions or earnings multiples. If one or more of the
significant inputs is not based on observable market data, the
instrument is included in level c (ii). The company's unquoted
investments all fall into this category.

There have been no transfers between these classifications in the year.
The change in fair value for the current and previous year is recognised
through the statement of comprehensive income.

b) Non-qualifying Investments

In order to safeguard the capital available for investment in VCT
Qualifying Investments and balance this with the need to provide good
returns to investors, available funds from the net proceeds are invested
in appropriate securities (money market securities and cash funds) until
required for Qualifying Investment purposes.

7. Net Asset Value per share

The unaudited net asset value per C share has been calculated based on
Nil C shares being the number of C shares in issue as at 30 June 2015
(31 December 2014: Nil; 30 June 2014: 2,810,596).

The unaudited net asset value per D share has been calculated based on
6,735,624 D shares being the number of D shares in issue as at 30 June
2015 (31 December 2014: 6,735,624; 30 June 2014: 6,735,624).

The unaudited net asset value per E share has been calculated based on
2,846,122 E shares being the number of E shares in issue as at 30 June
2015 (31 December 2014: 2,846,122; 30 June 2014: 2,846,122).

The unaudited net asset value per F share has been calculated based on
1,572,095 F shares being the number of F shares in issue as at 30 June
2015 (31 December 2014: 1,572,095; 30 June 2014: 1,572,095).

The unaudited net asset value per G share has been calculated based on
3,518,044 G shares being the number of G shares in issue as at 30 June
2015 (31 December 2014: 3,518,044; 30 June 2014: 3,518,044).

The unaudited net asset value per H share has been calculated based on
2,660,842 H shares being the number of H shares in issue as at 30 June
2015 (31 December 2014: 2,660,842; 30 June 2014: 2,660,842).

8. Related Party Transactions

a. The Company has appointed Ingenious Media Investments Limited, a
company of which Patrick McKenna is a director, to be its promoter.
Ingenious Media Investments Limited is a wholly owned subsidiary within
the Ingenious Media Holdings plc group of companies, which is controlled
by Patrick McKenna.

b. The Company has appointed Ingenious Ventures as Manager. Ingenious
Ventures is a trading division of Ingenious Capital Management Limited.
Patrick McKenna is a director of Ingenious Capital Management Limited
which is a subsidiary of Ingenious Capital Management Holdings Limited,
which is controlled by Patrick McKenna.

The Manager, as per the management agreement, receives a management fee
of 0.4375% of the net asset value payable quarterly in advance (1.75%
annualised). The Manager also receives an administration fee of £87,000
per annum from the Company.

c. The funds invested in OEICs are managed by Ingenious Asset Management
Limited, a company of which Patrick McKenna is a director. Ingenious
Asset Management Limited is a subsidiary of Ingenious Asset Management
Group Limited, which is controlled by Patrick McKenna. There is no fee
to the Company associated with this transaction.

d. Patrick McKenna is a director and a shareholder of Ingenious
Entertainment VCT 1 plc. The Company and Ingenious Entertainment VCT 1
plc jointly agreed to form a new company, The Zoo Project Festival
Limited, to stage the third Zoo Project Festival which will took place
at Donington Park in the East Midlands in September 2014. In March 2014,
the Company invested £300,000 in The Zoo Project Festival Limited -
£210,000 for an 18.75% equity stake together with a £90,000 loan note
instrument. Ingenious Entertainment VCT 1 plc also invested £300,000 in
The Zoo Project Festival Limited - £210,000 for an 18.75% equity stake
and a £90,000 loan note instrument.

e. Patrick McKenna is a director and a shareholder of Ingenious
Entertainment VCT 1 plc. The Company and Ingenious Entertainment VCT 1
plc jointly agreed to form a new company, FM3 2013 Limited, to produce
and distribute live entertainment content, particularly in the area of
music festivals. In March 2014 the Company invested £700,000 in FM3 2013
Limited - £490,000 for a 20% equity stake together with a £210,000 loan
note instrument. Ingenious Entertainment VCT 1 plc also invested
£700,000 in FM3 2013 Limited - £490,000 for a 20% equity stake together
with a £210,000 loan note instrument.

During the period the Company has carried out a number of transactions
with the above-mentioned related parties in the normal course of
business and on an arm’s length basis:

Expenditure Paid

Amounts Due

Entity

Note

30 June 2015

£'000

30 June 2014

£'000

31 December 2014

£'000

30 June 2015

£'000

30 June 2014

£'000

31 December 2014

£'000

Ingenious Capital Management Limited

- Investment management fee

b

104

130

242

-

-

-

- Administration fee

b

38

48

88

-

-

-

- Irrecoverable VAT

b

-

(6)

-

-

-

6

Ingenious Media Investments Limited

- Arrangement fee

a

-

-

-

-

-

-

Transactions Between Related Parties

Ingenious Capital Management Limited, a company which is a wholly-owned
subsidiary of Ingenious Capital Management Holdings Limited, which is
controlled by Patrick McKenna, has entered into consultancy agreements
with each of the Company’s Investee Companies to provide management
services from 6 April 2014. Ingenious Media Consulting Limited, which is
a subsidiary of the Ingenious Media Holdings plc group of companies
controlled by Patrick McKenna, provided management services under
consultancy agreements until 5 April 2014.

During the period, Ingenious Capital Management Limited charged
consulting fees for the provision of such services totalling £103,000
excluding VAT (31 December 2014: £122,000; 30 June 2014: £13,000), of
which £29,000 remained outstanding as at 30 June 2015 (31 December 2014:
£38,000; 30 June 2014: £16,000).

During the period, Ingenious Media Consulting Limited charged consulting
fees for the provision of such services totalling £Nil (31 December
2014: £Nil; 30 June 2014: £94,000), of which £Nil remained outstanding
as at 30 June 2015 (31 December 2014: £Nil; 30 June 2014; £58,000).

The Company’s statutory financial statements for the year ended 31
December 2014 have been delivered to the Registrar of Companies. The
auditor’s report on those financial statements was unqualified and did
not contain statements under Section 498 (2) or section 498 (3) of the
Companies Act 2006.

This condensed interim information for the period does not constitute
statutory financial statements within the meaning of s434 of the
Companies Act 2006.

Copies of the half-yearly financial report are being sent, or made
available electronically, to all shareholders. Further copies can be
downloaded from the Company’s website: www.ingeniousvcts.co.uk